By Ellis S.B. No. 1103 75R6465 JSA-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to assisting certain low-income persons to participate in 1-3 the prepaid higher education tuition program. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter F, Chapter 54, Education Code, is 1-6 amended by adding Section 54.6335 to read as follows: 1-7 Sec. 54.6335. PREPAID TUITION ASSISTANCE PAYMENTS FOR 1-8 LOW-INCOME PARTICIPANTS. (a) The board shall provide assistance 1-9 payments to an eligible purchaser of a prepaid tuition contract as 1-10 provided by this section, subject to the availability of funding. 1-11 (b) To receive assistance payments under this section, the 1-12 purchaser must apply to the board in the manner provided by the 1-13 board. A purchaser may apply for assistance payments before 1-14 entering into a prepaid tuition contract or at any other time 1-15 before the purchaser has made all payments required under a 1-16 contract, except that the board may require a purchaser to apply 1-17 for assistance payments before a specified date each year in order 1-18 to receive assistance payments for that year. The board shall 1-19 require a purchaser annually to provide the board with information 1-20 the board requires to determine the purchaser's eligibility for 1-21 assistance payments under this section. 1-22 (c) The amount of assistance paid under this section is 1-23 determined as follows: 1-24 (1) if the family income of the purchaser and the 2-1 family income of the beneficiary for a calendar year are each not 2-2 greater than the federal poverty level, the board shall pay 10 2-3 percent of each contract payment required to be made in the next 2-4 calendar year; 2-5 (2) if the purchaser does not qualify for assistance 2-6 payments under Subdivision (1) and the family income of the 2-7 purchaser and the family income of the beneficiary for a calendar 2-8 year are each less than 150 percent of the federal poverty level, 2-9 the board shall pay eight percent of each contract payment required 2-10 to be made in the next calendar year; and 2-11 (3) if the purchaser does not qualify for assistance 2-12 payments under Subdivision (1) or (2) and the family income of the 2-13 purchaser and the family income of the beneficiary for a calendar 2-14 year are each less than 200 percent of the federal poverty level, 2-15 the board shall pay six percent of each contract payment required 2-16 to be made in the next calendar year. 2-17 (d) The availability of assistance payments under this 2-18 section does not affect the amount required to be paid under a 2-19 prepaid tuition contract. A purchaser eligible for an assistance 2-20 payment under this section remains responsible for payment of the 2-21 full amount due under the contract if funding is not available to 2-22 provide the purchaser with all or part of the assistance payments 2-23 for which the purchaser is eligible. 2-24 (e) Assistance payments under this section are made from 2-25 appropriations, gifts and grants, and other revenue from any source 2-26 obtained or received by the board to fund this section. If 2-27 sufficient funds are not available to make assistance payments in 3-1 the amounts provided by this section in a calendar year, the board 3-2 shall reduce the amount of each assistance payment proportionally 3-3 according to the amount of funds available. If no funds are 3-4 available to make assistance payments in a calendar year, the board 3-5 may not make assistance payments in that year. The board may adopt 3-6 rules establishing the procedures for determining the amount of 3-7 revenue available for assistance payments in a calendar year and 3-8 for allocating available funds to persons eligible for assistance 3-9 payments. 3-10 (f) The board may establish a direct-support organization 3-11 under the Texas Non-Profit Corporation Act (Article 1396-1.01 et 3-12 seq., Vernon's Texas Civil Statutes) to solicit, receive, hold, 3-13 invest, and administer money, gifts, or grants to fund this 3-14 section. 3-15 (g) For purposes of this section, "federal poverty level" 3-16 means the income level established by the United States Department 3-17 of Health and Human Services as the poverty guideline for a family 3-18 unit of the applicable size for a specific calendar year. 3-19 SECTION 2. (a) Except as otherwise provided by this 3-20 section, this Act takes effect January 1, 1998. 3-21 (b) The Prepaid Higher Education Tuition Board may adopt 3-22 rules for the administration of Section 54.6335, Education Code, as 3-23 added by this Act, before January 1, 1998. 3-24 (c) A purchaser of a prepaid tuition contract is not 3-25 eligible for prepaid tuition assistance payments under Section 3-26 54.6335, Education Code, as added by this Act, in connection with 3-27 any payments due under a prepaid tuition contract before the 4-1 effective date of this Act. 4-2 SECTION 3. The importance of this legislation and the 4-3 crowded condition of the calendars in both houses create an 4-4 emergency and an imperative public necessity that the 4-5 constitutional rule requiring bills to be read on three several 4-6 days in each house be suspended, and this rule is hereby suspended.